Here are the key highlights, growth drivers, and potential risks investors should watch.
๐น Financial Performance Highlights
Sales Growth: Net sales increased 10% YoY to $187.8B, compared to $170.0B in Q4 2023. Adjusted for unfavorable currency effects, growth would be 11%.
Segment Sales:
North America: Up 10% to $115.6B.
International: Up 8% to $43.4B (9% excluding FX impact).
AWS: The standout performer, growing 19% to $28.8B.
Operating Income: Increased to $21.2B, up from $13.2B in Q4 2023.
North America: Operating profit of $9.3B (vs. $6.5B in Q4 2023).
International: Swung from a $0.4B loss to a $1.3B profit.
AWS: Operating profit rose to $10.6B (vs. $7.2B in Q4 2023).
Net Income: More than doubled to $20B ($1.86 per diluted share) from $10.6B ($1.00 per share) in Q4 2023.
Full-Year 2024 Results:
Net sales $638B (+11% YoY).
Operating income $68.6B (vs. $36.9B in 2023).
Net income $59.2B ($5.53 per share), nearly doubling from $30.4B in 2023.
Cash Flow:
Operating cash flow $115.9B (+36%).
Free cash flow $38.2B, showing strong financial health.
๐น Annual Comparisons
Revenue growth: 11% in 2024 (vs. 10% in 2023).
Operating income: Nearly doubled to $68.6B (vs. $36.9B in 2023).
Net income: Surged to $59.2B (vs. $30.4B in 2023).
Cash flow: $115.9B, up from $84.9B in 2023.
๐น Challenges & Risks
โ ๏ธ FX Impact: Currency fluctuations continue to affect results.
โ ๏ธ Shipping Costs: Increased to $28.5B in Q4 2024 (vs. $27.3B in Q4 2023).
โ ๏ธ Infrastructure Investments: AWS growth requires heavy capital spending.
โ ๏ธ Macroeconomic Risks: Inflation, interest rates, and competition remain key factors.
๐น Whereโs the Growth?
๐ AWS: 19% growth with strong profitability, plus investments in AI (Trainium2 chips, Amazon Nova foundation models).
๐ Innovation: AI, shopping experiences (Amazon Haul), and entertainment (Red One movie, NFL Thursday Night Football).
๐ Global Expansion: New AWS regions in Thailand and Mexico signal continued global reach.
๐น Final Thoughts
Amazon delivered a strong Q4 and full-year 2024, driven by AWS, innovation, and strategic expansion. While FX volatility and shipping costs remain concerns, the company continues to demonstrate resilience and long-term growth potential.
What are your thoughts on Amazonโs latest earnings?ย ย
๐ง๐ต๐ถ๐ ๐ถ๐ ๐๐ต๐ฒ ๐ฝ๐ฒ๐ฟ๐ณ๐ฒ๐ฐ๐ ๐๐ถ๐บ๐ฒ ๐๐ผ ๐ฐ๐ผ๐ฝ๐ ๐บ๐ฒ ๐ผ๐ป ๐ฒ๐ง๐ผ๐ฟ๐ผโ๐ฑ๐ผ๐ปโ๐ ๐บ๐ถ๐๐ ๐๐ต๐ถ๐ ๐ผ๐ฝ๐ฝ๐ผ๐ฟ๐๐๐ป๐ถ๐๐ ๐๐ผ ๐ด๐ฟ๐ผ๐ ๐ฎ๐น๐ผ๐ป๐ด๐๐ถ๐ฑ๐ฒ ๐บ๐ ๐๐๐ฟ๐ฎ๐๐ฒ๐ด๐.
๐ ๐๐ถ๐๐ฐ๐น๐ฎ๐ถ๐บ๐ฒ๐ฟ: This is my personal opinion and is for informational purposes only. You should not interpret this information as financial or investment advice.ย $TSLA (-4,32ย %)
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